Could XRP Hit $0.70 Next? Arguments for a 40% Drop
June 6, 2026
XRP has experienced a recent downturn in the crypto market, with a 22% retracement over the past 30 days, pushing its price below $1.10 and causing it to trade below important moving averages. Analysts are now warning of a potential 40% further drop towards $0.70, with key support levels at $1.05 and $1.00. Despite this bearish outlook, on-chain metrics present a mixed view – there are 332,230 wallets holding 10,000 XRP or more, and 42 new millionaire wallets have been created this year, indicating growing interest in the cryptocurrency.
Whales, who control a significant amount of XRP supply, with 45.83 billion tokens representing 68.5% of circulating supply, are also showing behavior patterns that suggest tightening around the token’s availability. Notably, whale outflow dominance on Binance has hit a high of 91.4%, signaling potential bullish momentum in the future, as seen in previous instances in 2024.
Moreover, XRP’s monthly Relative Strength Index (RSI) has entered a rare oversold reset zone, only occurring for the fourth time in 13 years. Historically, such RSI resets have indicated major reversals in XRP’s direction, hinting at a possible turnaround in its current price trajectory.
Despite the bearish indicators, there are two potential bright spots on the horizon for XRP. The CLARITY Act, which is making its way through the legislative process, could be a significant catalyst for the cryptocurrency. The bill, which cleared the Senate Banking Committee on May 14 and is now on the Senate Legislative Calendar, could provide much-needed clarity for XRP’s regulatory landscape. If approved, analysts predict a potential price target of $2.80, with bullish scenarios reaching as high as $8.
While there is optimism surrounding the possibilities of the CLARITY Act, the bill’s progression remains uncertain. If it falters in the legislative process and faces delays, the outlook for XRP could be significantly impacted. The next major milestone to watch for is the full Senate vote, which could determine the cryptocurrency’s trajectory for the rest of the year.
In conclusion, XRP is currently facing a challenging market environment, with potential further downside risks. However, on-chain data and key indicators suggest that there may be reasons for cautious optimism in the future, pending developments in regulatory clarity and market conditions. Investors should closely monitor these key factors to evaluate XRP’s potential price trajectory in the coming months.
